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Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
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AI Drafter - (New and Powerful) ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
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Issues: (i) Whether the disallowance of employees' PF and ESI contribution deposited beyond the statutory due date but before the return filing date was sustainable; (ii) Whether the limited factual issue relating to the actual salary disbursement date and corresponding due date required fresh adjudication.
Issue (i): Whether the disallowance of employees' PF and ESI contribution deposited beyond the statutory due date but before the return filing date was sustainable.
Analysis: The issue stood covered by the binding precedent holding that employees' contributions must be deposited within the due date prescribed under the relevant welfare statute, and compliance under section 36(1)(va) is not satisfied by deposit within the time allowed for filing the return under section 139(1) of the Income-tax Act, 1961.
Conclusion: The disallowance was upheld and this issue was decided against the assessee.
Issue (ii): Whether the limited factual issue relating to the actual salary disbursement date and corresponding due date required fresh adjudication.
Analysis: The record indicated a factual controversy regarding the relevant payment dates and the corresponding due dates, and the matter was sent back for verification and fresh decision after giving the assessee an opportunity to establish the relevant facts.
Conclusion: The issue was restored to the Assessing Officer for fresh adjudication in favour of the assessee to that limited extent.
Final Conclusion: The appeal failed on the substantive disallowance issue but succeeded only to the limited extent of remand for fresh consideration of the factual question, resulting in a partial allowance for statistical purposes.
Ratio Decidendi: Employees' contributions to PF and ESI must be deposited within the due date prescribed under the respective welfare legislation, and a factual dispute about the relevant payment dates may justify remand for fresh adjudication.
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